HB6150 Summary

• Establishes voluntary benefit buyout programs across 17 Illinois public pension systems allowing participants to receive cash payments in exchange for accepting increased retirement ages or forfeiting future automatic benefit increases.

• Eligible participants who became members before January 1, 2011 may elect to increase required retirement age by either 2 or 7 years, or give up all future automatic annual benefit increases for themselves and survivors.

• Benefit buyout payments calculated individually as one-third of the difference between present value of unreduced benefits and present value of benefits after the election, using Board-adopted actuarial assumptions.

• Elections must be made during calendar year 2014, are irrevocable and in writing, with payments available as immediate cash, annual installments up to 5 years, or as qualified plan rollovers.

• Requires systems to report program results to Governor and General Assembly by March 1, 2015, including participation rates, payment amounts, and anticipated savings; takes effect immediately upon passage.